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India Gazette
a day ago
- Business
- India Gazette
ELI Scheme gets industry thumbs-up as game-changer for job creation
New Delhi [India], July 1 (ANI): Indian industry leaders have hailed the government's approval of the Employment Linked Incentive (ELI) Scheme as a bold and timely move to tackle India's pressing job creation challenge. The business executives and policy experts believe that the scheme will transform the employment landscape, as it focuses on formalising the workforce, empowering first-time job seekers, and reducing hiring costs for employers--especially in labour-intensive and capital-constrained sectors. Many have compared its potential impact to that of the Production Linked Incentive (PLI) scheme, calling it a 'game-changer' for youth employment, regional development, and growth of MSMEs. The Union Cabinet on Tuesday approved the much-anticipated Employment Linked Incentive (ELI) Scheme, aimed at generating over 3.5 crore jobs and providing a major boost to formal employment, particularly in labour-intensive sectors such as manufacturing, textiles, tourism, and construction. Welcoming the move, Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), said, 'ELI is a significant step towards boosting employment and formalising India's workforce. The ELI scheme opens doors for first-time job seekers, empowering them to contribute meaningfully to India's growth story. It empowers employers to expand their workforce and gives a decisive push to India's labour-intensive sectors.' With an outlay of Rs 99446 crore, the ELI Scheme will support the creation of over 3.5 crore jobs. Sumita Dawra, former Secretary, Ministry of Labour & Employment, said that the scheme has been prepared with a lot of consultation with industry, trade unions, more than 25 ministries of the government of India, with all the state governments, and with the regional workshops, which were done in the states to consult the industry there and the officers. 'PM was very clear that the scheme should be simple and effective so that the real benefit of the scheme reaches the youth of the country, particularly the first-timers who are entering the workforce, and also it serves as an incentive for employment generation, particularly in the manufacturing sector... More than 3.5 crore jobs are expected as a result of the scheme,' she said. Subhrakant Panda, Managing Director of IMFA, said, 'The scheme will drive employment, especially in the manufacturing sector, by taking an innovative approach that provides support to those entering the workforce for the first time with incentives for sustained employment. This will be a game changer for the labour-intensive industries and MSMEs.' Dr Ranjeet Mehta, CEO and Secretary General of PHD Chamber of Commerce and Industry (PHDCCI), said the scheme comes at a time when India's youth population is at its peak. 'This announcement by the government is very important, as India has the world's largest youth population. We have a demographic dividend and having this kind of scheme will definitely create employment for our youth population. Secondly, it also incentivises industries, especially the MSMEs who are always very short on capital.' 'So giving this kind of a scheme and reimbursing the cost for one year will definitely reduce the cost of the employment at the same time, this will also focus on regional development,' he added. For businesses, the scheme also offers direct wage and hiring-related incentives. Raghunandan Saraf, Founder and CEO of Saraf Furniture, noted the dual benefits for employers and employees. 'The scheme is actually intended to give more opportunities to the employees who are struggling to find jobs or find employment. So this is going to be a good boost to the current employment market as well... It also helps the employees in retaining the employees. This is going to lower the attrition rate as well; it's also going to increase savings for the employees,' he added. Saraf further added, 'Employers are also set to receive some incentive based on this, a nominal amount. So that incentive is just to make sure that employers are also on board with the scheme... One larger benefit is that the attrition rate will be lower now. since the incentive is to be distributed after six months and then after 12 months. So that means the attrition rate will be lower and at the same time, employers will also receive some incentive.' Under the Scheme, while the first-time employees will get one month's wage up to Rs 15,000, the employers will be given incentives for a period of two years for generating additional employment. The ELI Scheme was announced in the Union Budget 2024-25 as part of the PM's package of five schemes to facilitate employment, skilling and other opportunities for 4.1 Crore youth with a total budget outlay of Rs 2 Lakh Crore. (ANI)
Time of India
2 days ago
- Business
- Time of India
Industrial and Warehousing segment witness absorption of 34 million sq ft. in first half of 2025
India's industrial and warehousing sector experienced robust growth in the first half of 2025, with absorption reaching 34 million sq. ft., a 24.5% increase year-on-year. Manufacturing significantly contributed, while Tier I cities dominated absorption. Grade A spaces are gaining traction, projected to exceed 60% of total supply and absorption by year-end, signaling a shift towards higher quality facilities. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Industrial and Warehousing real estate segment witnessed absorption of 34 million sq. ft. in the first half of 2025, reflecting a 24.5% year-on-year increase compared to the 27.3 million sq. ft. absorbed during the same period in 2024, according to Savills India, a global real estate advisory was driven by a substantial contribution from the manufacturing segment and sustained demand from the 3PL segment, followed by the e-commerce, FMCG/FMCD and retail I cities accounted for 77% of total absorption, while Tier II & III cities took the remaining 23%, as per Savills the supply side, the market witnessed fresh supply of 33.4million sq. ft., of which Tier I cities accounted for 27.3million sq. ft. (82%), while Tier II & III cities contributed 6.1million sq. ft. (18%). The market witnessed delivery of projects across cities in tandem with the growing demand.'India's industrial and logistics sector is on track for significant expansion, with projected absorption expected to exceed 65 million sq. ft. in 2025. This growth is being driven by strong demand from the manufacturing sector and sustained momentum in third-party logistics (3PL) and retail,' said Srinivas N, Managing Director, Industrial and Logistics, Savills and Tier-III cities are becoming integral to sourcing, consumption, and distribution networks, positioning themselves as the next frontiers for industrial and logistics shift towards Grade A spaces is increasing, with share of demand rising from 39% in H1 2024 to 55% in H1 2025. Meanwhile, the share of Grade A supply grew from 49% to 58% during the same growth is driven by a combination of demand and supply side factors, including a growing emphasis on ESG standards , quality and compliance. By the end of 2025, Grade A spaces are projected to account for over 60% of both total supply and manufacturing sector witnessed a significant surge in activity, with its share of total space absorption rising from 22% in H1 2024 to 32% in H1 2025. This growth has been propelled by a series of Central and State-level incentive programmes , notably the Production Linked Incentive (PLI) Scheme, which continues to drive investments and contrast, the 3PL segment saw its contribution decline from 33% in H1 2024 to 26% in H1 2025, primarily due to reduced supply chain outsourcing by FMCG and FMCD companies aiming to optimise operational e-commerce segment has almost doubled its contribution to overall absorption, increasing from 6% in H1 2024 to 11% in H1 2025 while the contribution of the FMCG/FMCD and retail segments stood at 11% and 7% respectively in H1 the major cities in India, Delhi NCR led the pack with the highest absorption in H1 2025 at 19% followed by Pune and Mumbai each at 15%, and Bengaluru at 10%. Meanwhile,Tier II & III cities together accounted for 23% of overall terms of supply, Delhi NCR accounted for the highest contribution at 18% in H1 2025, followed by Pune at 17%, Mumbai at 16%, and Tier II & III cities at 18% of the total supply.
Business Upturn
2 days ago
- Business
- Business Upturn
Dixon Technologies shares slip 3% after Morgan Stanley downgrade stock to ‘Underweight'
By Aman Shukla Published on July 1, 2025, 09:52 IST Shares of Dixon Technologies fell 3% in early trade after global brokerage Morgan Stanley downgraded the stock to 'Underweight' and lowered its target price to ₹11,563. As of 9:51 AM, the shares were trading 2.96% lower at Rs 14,539.00. In its note, the brokerage cited concerns over increased competition in Dixon's core Electronics Manufacturing Services (EMS) segment, particularly after the Production Linked Incentive (PLI) benefits phase out. It also pointed to a likely slowdown in the company's earnings growth over the medium term. Morgan Stanley estimates that Dixon's core EMS business could see earnings growth drop by 46% during FY25–27, followed by a more moderate 18% growth rate between FY27–30. The firm believes that this slowdown could weigh on the stock's performance going forward. While the company's move into component manufacturing is seen as a positive strategic step, Morgan Stanley flagged execution challenges, noting that success in this segment hinges on securing technology partnerships, regulatory approvals, and maintaining cost efficiency. On Dixon's entry into the display fabrication space, the brokerage highlighted the deep cyclical nature of the business. It noted that such a venture would require sustained capital investment and R&D expenditure, adding another layer of complexity to the company's growth plans. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Malaysia Sun
2 days ago
- Business
- Malaysia Sun
India's textile sector needs fair deal from ASEAN countries: Exim Bank Report
New Delhi [India], June 30 (ANI): India's trade with its top ASEAN partners like Indonesia, Thailand, and Malaysia has grown a lot, even though India has taken a protectionist approach after signing the ASEAN-India Free Trade Agreement (AITIGA). But Indian exporters, especially in the textile sector, are still facing major challenges. A report by India-Exim Bank noted that a large number of Indian textile products have been put on 'exclusion' or 'sensitive' lists by ASEAN countries. This means they don't get duty-free access, making it harder for Indian textiles to compete in those markets. Countries like the Philippines and Vietnam also offer zero-duty access under AITIGA, but Indian businesses are not using this opportunity fully. The study suggests that the trade agreement needs to be re-examined and renegotiated. Many products that India is strong in exporting are blocked or restricted by ASEAN countries. These are called 'offensive' products, and India should push for better access to them. At the same time, there are 'defensive' products where India should keep higher tariffs to protect local industries and reduce the trade gap. The textile and garment industry is very important for India's economy. It makes up over 10 per cent of India's manufacturing output and 1.4 per cent of the total GDP. In 2023-24, textile exports were worth USD 34.4 billion, or nearly 8 per cent of India's total merchandise exports. To boost the growth of man-made fibres, the Government of India has launched a special support plan called the Production Linked Incentive (PLI) scheme. This scheme is focused on the Man-Made Fibres (MMF) and Technical Textiles sectors. It aims to attract investment, encourage local manufacturing, and make Indian products more competitive in global markets. So far, 73 companies have been chosen to benefit from this scheme. India is already one of the world's top producers of textiles. It ranks second in cotton production after China. In the 2023 market year, China made up over 24 per cent of the world's cotton output, while India followed closely with 23 per cent. Other major producers include Brazil (13 per cent), the USA (11 per cent), and Pakistan (6 per cent). India contributes about 4.7 per cent to global textile production and is a major player in cotton, silk, raw jute, and man-made fibres. These products are used both in India and exported to other countries. (ANI)
Hans India
2 days ago
- Business
- Hans India
Ericsson's antenna manufacturing unit bolsters global confidence in India: Minister
New Delhi: The launch of Ericsson's manufacturing unit demonstrates global confidence in India's capabilities and the country's growing confidence in its future, Union Communications Minister Jyotiraditya Scindia said on Monday. Inaugurating Ericsson's state-of-the-art antenna manufacturing facility at VVDN's Global Innovation Park in Manesar, Haryana, the minister said this is more than the launch of a manufacturing unit — it marks the birth of a facility that will power the networks of tomorrow and connect millions across the globe. Highlighting the broader vision of the government, the minister added, 'This is where global technology converges with Indian ingenuity. Under Prime Minister Narendra Modi's leadership, the 'Make in India' mission is evolving into a 'Make for the World' movement.' Emphasising the transformative impact of global technology partnerships on India's telecom sector, the Union Minister noted that global investments from companies like Ericsson, Apple, Google, and Qualcomm go beyond financial contributions. 'They bring cutting-edge technology, world-class production standards, and extensive training capabilities for our engineers,' he said, adding that such collaborations have been instrumental in positioning Indian talent on the global stage. Highlighting Ericsson's contribution, Scindia said the company's initiatives — including network APIs, automation, and its Global AI Accelerator in Bengaluru — have significantly advanced India's role in the global value chain. 'As India transitions from its Amrit Kaal to its Shatabdi Kaal over the next two decades,' this journey will not only transform India, but through India, help transform the world,' said the minister. The facility, developed in collaboration between Ericsson and VVDN Technologies, is Ericsson's first to produce passive antennas in India for global markets. Shipments are expected to commence in July 2025. This facility is one of its kind, where more than 50 per cent of the passive antenna production, built to meet rigorous domestic and international standards, for the domestic market will be localised, reinforcing India's emergence as a trusted global manufacturing and innovation hub. Citing the success of the Production Linked Incentive (PLI) scheme, he noted that it has attracted over Rs 4,000 crore in investment, generated Rs 80,000 crore in production output, and created more than 34,000 jobs. Liberalised FDI policies and sectoral reforms have further unlocked growth with over $39 billion in foreign investment since 2000, and telecom now contributing nearly 7 per cent of India's GDP. 'This facility is a long-term investment in Indian talent, engineering, and innovation. We are committed to building a full-spectrum antenna ecosystem here,' said Mikael Eriksson, Ericsson's Head of Antenna Systems.
